Top 5 Mistakes Florida Real Estate Investors Make (And How to Avoid Them)
With over 25 years of combined experience in real estate and property insurance, we've seen investors lose thousands from avoidable mistakes. This guide will help you make smarter, safer decisions—whether you're flipping, buying, or holding long-term rentals.
1. Underestimating Renovation Costs
Contractor quotes often miss hidden damage, code issues, or permit delays.
Pro Tip: Always pad your renovation budget by 15–25% and do a pre-reno walkthrough with someone who knows what to look for—like a consultant, inspector, or experienced builder.
2. Buying Without an Insurance Review
Many flips and rentals have outdated or denied coverage due to age, plumbing, roof, or location.
Pro Tip: Review your insurance options before closing—especially if the property is older, coastal, or in a flood zone. Poor or denied coverage can destroy your deal.
3. Skipping the Walkthrough with a Second Set of Eyes
Even experienced investors miss things when excited.
Pro Tip: Bring someone objective—like a rehab consultant, inspector, or mentor—on walkthroughs to help you spot red flags and hidden costs.
4. Assuming the ARV Is Guaranteed
Relying too heavily on top-end comps without adjusting for finishes, layout, or shifting markets is risky.
Pro Tip: Always validate your After-Repair Value (ARV) using conservative comps and consider local inventory trends and recent sales velocity.
5. Not Understanding Insurance Exclusions
Most investors assume “I’m covered”—until a claim gets denied.
Pro Tip: Learn what your policy excludes, such as:
- Water damage during renovations
- Sewer backups
- Mold
- Vacancy longer than 30 days
These can wipe out your profits fast.
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